Tax
CESTAT Quashes Service Tax Demand Based Solely On Income Tax Data In Form 26AS
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that the service tax demand cannot be based solely on Income Tax Data in Form 26AS without establishing receipt of consideration. The Bench of Dr. Rachna Gupta (Judicial Member) stated that “Revenue cannot raise the demand on the basis of difference in the figures reflected in the...
Notional Cost Of Maruti's Free Designs Supplied To Vendors Not Dutiable Under Central Excise: CESTAT
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that notional cost of Maruti's free designs supplied to vendors not dutiable under Central Excise. The Bench of Justice Dilip Gupta (President) and P.V. Subba Rao (Technical Member) was addressing the issue whether the notional cost of drawings and designs supplied free of cost by Maruti to...
Construction Sub-Contractor Cannot Escape Service Tax Liability When Main Contractor Is Taxable: CESTAT
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that construction sub-contractor cannot escape service tax liability when main contractor is taxable. The Bench of Binu Tamta (Judicial Member) and Hemambika R. Priya (Technical Member) has stated that the construction of residential complexes was not exempt from service tax duty. Hence,...
Customs Act | Bonafide Declaration Of Value Of Goods Can't Be Treated As Suppression Merely For Being Incorrect: CESTAT
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that bonafide declaration of value of goods can't be treated as suppression merely for being incorrect. The Bench of Justice Dilip Gupta (President) and Hemambika R. Priya (Technical Member) has observed that the declaration of the value of goods was a bonafide declaration and merely because...
HIV Test Kits Qualify As Life-Saving Diagnostic Kits; Eligible For Customs Duty Exemption: CESTAT
The New Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has stated that HIV-VL test kits qualify as life-saving diagnostic kits and is eligible for customs duty exemption. The Bench of Justice Dilip Gupta (President) and P.V. Subba Rao (Technical Member) has observed that the HIV-VL test kits are “life-saving diagnostic kits” used for detection...
Reconstituted GSTAT Selection Committee Has Power To Restart Process Afresh: Orissa High Court
The Orissa High Court held that the reconstituted GSTAT (Central Goods and Services Tax Appellate Tribunal) selection committee has the authority to restart the entire appointment process. “…….Mere offering the candidature in a public employment does not create indefeasible or inchoate right into the appointment. Even a person, whose name is included in the select list,...
Customs Department Bound By DGFT's Classification Of Capital Goods Under EPCG Scheme: Madras High Court
The Madras High Court stated that customs department bound by DGFT's classification of capital goods under EPCG scheme (export promotion capital goods scheme). The Division Bench consists of Justices Anita Sumanth and N. Senthilkumar observed that “there is no justification in the Department having made the assessee litigate the issue needlessly despite the CBEC having...
Ad Tax Cannot Be Imposed On Educational Institutions For Putting Up Non-Commercial Signages On Their Property: Karnataka High Court
The Karnataka High Court has set aside an advertisement tax demand notice issued by the Bruhat Bengaluru Mahanagara Palike (BBMP) to an educational institution for displaying non-commercial signage and boards on its own property.Justice Sachin Shankar Magadum held thus while allowing the petition filed by BS Gupta, Secretary of Gupta Education Trust, who had challenged the legality/validity...
No Right To Reinstatement Of Customs Broker License After Breach Of Trust With Customs Department: Kerala High Court
The Kerala High Court stated that no right to reinstatement of customs broker license after breach of trust with customs department. Justices A.K. Jayasankaran Nambiar and P.M. Manoj stated that “…..the relationship between the Customs Department and the Customs Broker appointed in terms of the Regulations is essentially one of trust. Once that trust is broken, and the Customs...
Taxpayers With Pending Appeals Eligible For 50% Relief Under 2020 Samadhan Scheme: Madhya Pradesh High Court
The Madhya Pradesh High Court stated that taxpayers with pending appeals are eligible for 50% relief under the 2020 Samadhan Scheme (The Madhya Pradesh Karadhan Adhiniyamon Ki Puranee Bakaya Rashi Ka Samadhan Adhyadesh, 2020). Justices Vivek Rusia and Binod Kumar Dwivedi observed that the assessee's case is pending before the appellate authority, and the department wrongly considered...
DTAA Prevails Over S.206AA Of Income Tax Act For TDS On Payments To Non-Residents Without PAN: Gujarat High Court
The Gujarat High Court stated that DTAA (Double Taxation Avoidance Agreement) prevails over Section 206AA of Income Tax Act for TDS on payments to non-residents without PAN. Justices Bhargav D. Karia and Pranav Trivedi was addressing the appeals pertains to alleged short deduction of TDS and raising demand by invoking provisions of section 206AA of the Income Tax...
Luxury Tax U/S 5A Of Kerala Building Tax Act Is Constitutionally Valid, However, Demand Beyond 3 Years Is Unsustainable: Kerala High Court
The Kerala High Court stated that luxury tax under Section 5A Of Kerala Building Tax Act is constitutionally valid post 101st Amendment to the Constitution but a demand that extends to more than three years prior to the date of the demand notice cannot be legally sustained. Justices A.K. Jayasankaran Nambiar and P.M. Manoj opined that “Entry 49 of List II of the 7th Schedule to...